Working Paper
A Gravity Model of Sovereign Lending: Trade, Default and Credit
Abstract: One reason why countries service their external debts is the fear that default might lead to shrinkage of international trade. If so, then creditors should systematically lend more to countries with which they share closer trade links. We develop a simple theoretical model to capture this intuition, then test and corroborate this idea.
https://doi.org/10.24148/wp2002-09
Access Documents
File(s):
File format is application/pdf
https://www.frbsf.org/wp-content/uploads/wp02-09bk.pdf
Description: PDF - view
File(s):
File format is text/html
https://www.frbsf.org/research-and-insights/publications/working-papers/2002/09/a-gravity-model-of-sovereign-lending-trade-default-and-credit/
Description: FRBSF - view
File(s):
File format is text/html
https://fraser.stlouisfed.org/title/working-papers-federal-reserve-bank-san-francisco-7038/a-gravity-model-sovereign-lending-639127
Description: FRASER - article
Authors
Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: Working Paper Series
Publication Date: 2002-09-01
Number: 2002-09
Note: PDF date: This draft: August 6, 2002.